INPEX (1605) Q1 2026 earnings summary

Executive summary

• 1Q FY2026 profit attributable to owners of parent was ¥109.4 billion, down 13.4% year-over-year, mainly due to lower sales volume and unit prices despite a weaker yen and some FX gains.

• Revenue for 1Q FY2026 declined 6.5% year-over-year to ¥501.8 billion, reflecting lower crude oil and natural gas prices and volumes.

• Operating profit for 1Q FY2026 was ¥278.2 billion, down 14.1% year-over-year.

• Total assets increased to ¥8,019.4 billion as of March 31, 2026, with equity attributable to owners of parent rising to ¥4,889.9 billion.

• Full-year FY2026 profit forecast was revised upward to ¥350.0–450.0 billion, reflecting higher oil price assumptions and FX rates amid Middle East conflict uncertainty.

Financial highlights

• Average Brent crude oil price rose 4.5% year-over-year to $78.38/bbl in 1Q FY2026, while the yen depreciated 2.9% to ¥156.96/$.

• Basic EPS for Q1 2026 was ¥94.08, down from ¥105.46 in Q1 2025.

• Cost of sales rose 6.0% to ¥230.2 billion, and SG&A expenses increased 4.7% to ¥32.2 billion.

• Finance income decreased 6.9% to ¥28.9 billion; finance costs fell 19.3% to ¥15.8 billion.

• Comprehensive income rebounded to ¥231.6 billion from a loss of ¥140.4 billion in Q1 2025, driven by positive exchange differences and fair value gains.

Outlook and guidance

• FY2026 profit forecast revised up to ¥350.0–450.0 billion (from ¥330.0 billion), with scenarios based on oil prices of $70–83/bbl and FX rates of ¥154–156/$.

• Revenue forecast for FY2026 raised to ¥2,291.0 billion (at $83/bbl) or ¥2,004.0 billion (at $70/bbl).

• ROE expected at 9.3% (at $83/bbl) and 7.4% (at $70/bbl); net debt/equity ratio projected at 0.33–0.35.

• Forecasts revised upward due to stable Ichthys Project operations and market conditions, but significant uncertainty remains due to geopolitical risks.